Jim Cramer, podcast host
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Jim Cramer said on Wednesday that he is concerned about a flood of new stock and bond issuance that could threaten the bull market.
Jim Cramer, podcast host
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"At least when it comes to the stock market, I'm a lot more worried about supply — specifically, the flood of new equity and bonds that have inundated this market, sopping up a lot of sidelined capital," Jim Cramer said.
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Jim Cramer noted that companies issued significant amounts of equity and debt in the last month.
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Jim Cramer cited Alphabet's stock sale as an example of recent equity and debt issuance.
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Jim Cramer cited large debt offerings from Amazon as an example of recent debt issuance.
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Jim Cramer warned that demand for new equity and bonds may be approaching its limits.
Jim Cramer, podcast host
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"I fear it's getting to be too much," Jim Cramer said.
Jim Cramer, podcast host
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"If the issuers and their investment banking minions don't rein things in, I think the bull is going to get hurt," Jim Cramer said.
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Jim Cramer expressed concern regarding Rivian's discounted stock offering.
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Jim Cramer expressed concern regarding SK Hynix's planned $28 billion Nasdaq listing.
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Jim Cramer said Rivian's discounted share sale suggests the market may no longer be willing to absorb new equity at lofty valuations.
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Jim Cramer questioned whether institutions will have to sell existing holdings to make room for the SK Hynix offering.
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Jim Cramer said the potential selling of existing holdings to make room for the SK Hynix offering could create additional selling pressure elsewhere in the market.
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Jim Cramer said the market has not yet reached a breaking point.
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Jim Cramer pointed to a rebound in semiconductor stocks during Wednesday's session.
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Jim Cramer noted that Nvidia led the rebound in semiconductor stocks.
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Jim Cramer noted that Nvidia had shed almost $1 trillion in market value from its peak prior to the rebound.
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Jim Cramer stated that Nvidia's stock got a boost after The Information reported that China will allow a handful of AI companies to buy a limited amount of H200 chips.
Jim Cramer, podcast host
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"We are still at equilibrium," Jim Cramer said.
Jim Cramer, podcast host
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"The buyers still have some spare cash," Jim Cramer said.
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Jim Cramer warned that market balance could quickly disappear if companies keep tapping investors for capital at the current pace.
Jim Cramer, podcast host
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"We haven't reached the danger zone yet, but if these offerings keep coming, we will not be safe from oversupply," Jim Cramer said.
Jim Cramer, podcast host
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"We need to see a break in the IPO and secondary action," Jim Cramer said.
Jim Cramer, podcast host
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"IPO abstention and M&A activity can still save the bull," Jim Cramer said.
Jim Cramer, podcast host
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"But if we keep getting this level of supply for a few more weeks? The bull will suffocate under the weight of all that new paper," Jim Cramer said.
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